Cleveland Federal Reserve President Beth Hammack said Wednesday that the central bank is weighing threats to both inflation and employment and should keep interest rates on hold as conditions evolve.
In a live CNBC interview, the central bank official advocated a patient approach to monetary policy as officials watch incoming data for clues about where the U.S. economy is heading.
“My baseline is that we’re going to remain on hold for a good while, but I do think that there’s two-sided risks to rates,” Hammack said during the “Squawk Box” discussion. “I think there’s risks that we might need to be more accommodative or more restrictive, depending on how the data comes out. But that’s why it’s a good time for us to stay patient and wait and see how the data flows through.”
Hammack is a voting participant this year at Federal Open Market Committee meetings.
After cutting three times in the latter part of 2025, the committee has kept on hold for both of its decisions this year. The benchmark federal funds rate is currently targeted in a range between 3.5%-3.75%, which Hammack said is a “good place” for monetary policy.
